The supermarkets in the US are adapting to the new shopping patterns, but the need to encourage impulse buys is high. Over the last 5-8 years, impulse sales have been important for the flower department in the supermarkets. But as people are making less trips to the supermarkets, there will be less opportunities for impulse buys. On top of that, a lot is now also bought online, so both in the store and online, supermarkets must cultivate impulse buying to maximize floral sales.
This and much more was discussed during PMA’s May 6 floral roundtable. Below an summary of what was discussed.
Consumer Insights
Euromonitor reported they expect the GDP to drop deeper than the 2009 recession; however, they also expect a better rebound. Supermarket shopping occasions have become much more structured, says Euromonitor. Casual shopping is out. Instead, consumers are coming with lists and minimizing time in the store. In some locations, consumers are scheduling grocery shopping with restaurant reservation-type apps. Impulse buying is down. COVID–19 accelerated trends that were already underway, according to Euromonitor.
Consumers are turning to digital channels. There’s a sharp shift toward online buying, including for grocery retail. While consumers may not continue to shop online with the same intensity they are now, e-commerce will remain a strong channel. Supermarkets need to capitalize on ways to drive impulse categories while consumers are ordering online, says Euromonitor. For example, at checkout or when a receipt is delivered, offer an impulse item at no additional service fee. Also, highly experiential in-store tactics will need to be rethought. Stores will either need to convert to creating a digital experience or drop altogether. For a copy of Euromonitor’s May 6 presentation, contact Info@Euromonitor.com.
Update from Retailers
Consumers are making fewer supermarket trips and buying more. They are shopping on different days of the week, not just weekends. Retailers report sales of seeds, bulbs, herbs, and outdoor lawn and garden products remain strong. One retailer said balloon sales were strong because party supply stores are closed. Other gift-type items like candles are also selling well. Another said indoor potted product sales have been strong. People are shifting toward basic commodity items. Bunches and bouquets have taken off again. Lower-priced, fresh-cut items are selling better. Arrangements are less popular.
Retailers also said e-commerce has been very strong, with some reporting record sales through the channel. To maximize online sales, stores must make it easy for consumers to purchase floral. Offering limited SKUs has worked for some, along with sound pricing and working with marketing and advertising staff to ensure consumers know they can buy floral online. Even those with strong online floral sales, however, say it’s critical for supermarkets to find ways to make floral more visible and easier for e-commerce customers to buy.
Occasion buying will continue for floral; however, there are challenges to capitalize on impulse buying. For example, one retailer reported that floral sections in some stores are taped off to direct traffic flow and maintain distancing. Another, however, said their queue for registers runs through the floral department. Floral departments are being staffed in some stores. Retailers also say that people want to celebrate, even if social distancing limits gatherings. One retailer suggested supermarkets need to focus on being a solution for consumers.
Update from Dutch Flower Group
The CEO of Dutch Flower Group, Marco van Zijverden, gave an global outlook and shared that supermarkets in Netherlands, Germany and the UK did a great job selling floral during the pandemic. They are also seeing increased floral demand in the United States, but it’s difficult to get airfreight from Europe. Volume is back to normal, even a little higher, for floral in China. Italy has picked up. The outlook overall is more positive now than two weeks ago. They are at 90 percent normal volume. Assortment is different, but people are buying flowers. (Click here to read the full global outlook of van Zijverden published on FloralDaily.)